Correlation Between Jiangxi Selon and Nanjing Putian
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Jiangxi Selon and Nanjing Putian and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jiangxi Selon with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Nanjing Putian.
Diversification Opportunities for Jiangxi Selon and Nanjing Putian
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Nanjing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec and Jiangxi Selon is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jiangxi Selon Industrial are associated (or correlated) with Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Nanjing Putian go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Nanjing Putian
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.45 times more return on investment than Nanjing Putian. However, Jiangxi Selon Industrial is 2.23 times less risky than Nanjing Putian. It trades about 0.34 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.18 per unit of risk. If you would invest 690.00 in Jiangxi Selon Industrial on September 28, 2024 and sell it today you would earn a total of 104.00 from holding Jiangxi Selon Industrial or generate 15.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Selon Industrial vs. Nanjing Putian Telecommunicati
Performance |
Timeline |
Jiangxi Selon Industrial |
Nanjing Putian Telec |
Jiangxi Selon and Nanjing Putian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Selon and Nanjing Putian
The main advantage of trading using opposite Jiangxi Selon and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Nanjing Putian can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
Nanjing Putian vs. Tianshui Huatian Technology | Nanjing Putian vs. Eastroc Beverage Group | Nanjing Putian vs. Sinofibers Technology Co | Nanjing Putian vs. Kuang Chi Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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